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Macau Properties Prop Up Las Vegas Sands

Las Vegas Sands Corporation lost $113.9 million in 2009's fourth quarter, according to their announcement on Wednesday. This was a significant improvement to 2008's fourth quarter, when they lost $136.5 million, but it capped off an incredibly difficult year for the company's fortunes. With total losses for 2009 reaching $540 million (compared to $188.8 million in 2008), making their fourth quarter a slight improvement, like a slightly patched roof on top of a nearly collapsed house.

With properties in both Las Vegas and in Macau, Las Vegas Sands has managed to weather the worst of the storm the recession has thrown at the casino industry. According to Sands Corporate CEO, Sheldon Adelson, the Las Vegas economy has seen little to no improvement. And with states like Pennsylvania legalizing table games and states like Hawaii considering the legalization of slot machines, it isn't looking up. Las Vegas Sands fourth quarter improvement comes from their Macau properties instead of their Las Vegas resorts.

Unlike the United States, which is still suffering through a "jobless recovery," the Chinese economy has rebounded from the effects of the recession. This recovery has allowed Macau casinos to function more profitably, particularly after the Chinese government relaxed their visa restrictions to the island. This development made travel from mainland China to Macau much easier, and brought more tourists to the Sands Resort more often.

Altogether, Sands Corporation owns four properties in Macau, including the Venetian Macau, Plaza Casino, Four Seasons Hotel Macau, and of course, Sands Macau. Revenue generated by the three casinos in Macau totaled $952.8 million in the fourth quarter. By comparison, their two Las Vegas properties generated a mere $263.7 million.

Singapore is also predominantly on Adelson's mind, as Sands Corporation is busy working on a mega casino resort complex there. Set to open in April, the Marina Bay Sands will be very competitive with the only other casino currently operating in Singapore, the Resorts World Sentosa.